Lecture Notes 19 (1) - 1-1MARK 3339 - Lecture

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Unformatted text preview: 1-1MARK 3339 - Lecture 19.SendWine.com1-2Background1997: Lannon launches “The Wine Line”Order-by-phone1998: The Wine Line becomes Sendwine.comAd campaign during the 1998 holiday seasonIndividual targeting of existing Wine Line customersLannon considers the possibility of further expansion into other gift categoriesApproaches venture capitalists => raise $10 millGoal to “redefine what it meant to give gifts over the Internet”1-3Sendwine.com’s Business ModelTarget customersbusy professionalsfrequent gift giversOperationsNetwork of approx. 100 retail stores covering over 80% of the US populationNo inventoryProduct selection and pricing40 different gift packagesPrices between $39-$750RetailersAvoided big liquor storesMarketing/PRMostly radio adsFather’s Day ad campaign in The Wall Street JournalStaffing46 employees in 19991-4Evaluating the Investment Opportunity From a Venture Capitalist’s PerspectiveIn evaluating the opportunity to invest in SendWine.com, venture capitalists are likely to consider:1.The potential for overall market growth2.SendWine’s position relative to prospective competitors3.The potential profitability of SendWine’s business model4.Ability of SendWine’s management to execute its business plan.1-51.The Potential for Overall Market GrowthBalancing positive and negative factors, potential demand for this business’s service seems promising, based on the following:...
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This note was uploaded on 02/10/2011 for the course FINANCE 4309 taught by Professor Tokic during the Spring '08 term at University of Houston - Downtown.

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Lecture Notes 19 (1) - 1-1MARK 3339 - Lecture

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